Chinese bubble-tea giant Mixue pops 47% on debut as investor demand surges

Mixue's stock surged 47% on its Hong Kong debut, hitting a $140.8B valuation.

: Mixue Group's shares rose over 47% on March 3, 2025, during its debut on the Hong Kong stock exchange, reaching HKD 287 per share and nearly a $140.8 billion valuation. The surge highlights increased investor interest in China's affordable beverage sector despite economic challenges. This rise in Mixue's stock contrasts with Kuaishou's, which fell significantly after its IPO in 2021. Mixue's growth is attributed to its budget-friendly pricing and extensive store network, which surpasses Starbucks globally.

The debut of the Chinese bubble tea company, Mixue Group, on the Hong Kong Stock Exchange was met with remarkable investor enthusiasm. Its shares skyrocketed by over 47% from the initial offering, closing at HKD 287 per share ($36.74). This jump catapulted Mixue’s market valuation close to $140.8 billion, a figure reflecting burgeoning interest in China’s economical beverage industry amidst broader economic uncertainties. The brand’s affordable approach continues to attract significant attention in today's conscious consumer-driven market.

Global demand for Mixue's stocks was substantial, with HKD 1.8 trillion ($230.8 billion) requested by individual margin investors. Hillhouse Capital, Meituan Long-Z Investments, and CPE were notable investors, having contributed generously during Mixue’s December 2020 pre-IPO funding round, the only one before its IPO. This influx of investor interest is largely driven by Mixue's strategic pricing, with products ranging from RMB 2 to RMB 8 ($0.28 to $1.11), effectively underpricing its competition in the bustling Chinese soft drinks market.

Recent trends indicate a robust inflow of capital into China's fresh beverage sector. With several companies like Nayuki, ChaPanda, and Guming having gone public, and others like Hey Tea and Auntea Jenny preparing to do so, Mixue's successful listing exemplifies the current market dynamics. Although the brand had previously struggled with failed listings in China’s A-share market and a public offering in Hong Kong, it finally made a successful debut in March 2025.

Mixue is now operating over 46,000 stores globally, surpassing Starbucks to become the largest freshly prepared drinks brand worldwide in terms of store count. The brand’s ability to resonate well with cost-conscious consumers has been further bolstered by this strategic expansion. Mixue's decision to list in Hong Kong instead of China’s A-share market indicates a shift in preference for more appealing market dynamics.

The Hong Kong listing achieved by Mixue broke previous records set by the short-video platform Kuaishou, which managed to raise HKD 1.5 trillion ($192.3 billion) during its 2021 IPO. However, Kuaishou's shares have fallen dramatically since then, demonstrating the volatility of market success post-IPO. In contrast, Mixue's strategic positioning and successful launch could potentially stabilize investor confidence in the broader market landscape.

Sources: TechNode, South China Morning Post, Bloomberg, Yahoo Finance, Financial Times.

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